Succession planning and how it impacts your organization

Succession planning is an important part of running a business, but it's often overlooked. In an interview with the Gallup Business Journal, Managing Partner Randall Beck explained that many companies don't have any type of strategy in place

"Succession planning isn't just naming the new CEO. In fact, it's not about putting a name behind a title at all. That's called replacement planning," Beck said. "Many companies don't have a formal succession plan in place, or if they do, it's old and dated. Often, the only time companies look at succession planning is during times of crisis, when they have to name somebody to fill a role quickly. But that's not succession planning either; that's crisis management."

Understanding future needs, talent and competencies of your organization helps lead to a cohesive plan. Here are some important elements of succession planning. 

Start within, then look elsewhere
Develop a leadership development strategy.  Ask yourself the following questions:

  • Are you looking to fill an interim position or identifying employees for future positions?
  • Are your board of directors involved?
  • Is HR developing this strategy with the executive team?
  • Will you look outside the company or promote internally?

Once these factors are identified and you agreed to look internally, create a list of employees who would thrive in elevated roles. Align them with team members who can provide the best training for the transition from one job to another. This ensures that there's continuity within your organization because these people understand internal practices and can mentor new additions to the executive team.

Make it Actionable and Flexible
The difficult part about succession planning is that it's easy to create ideal strategies, many of which aren't feasible. This means that businesses develop amazing plans that are all flash and no substance.  The succession plan should be a breathing, living document of how your company will move forward within a defined period of time. Revisit your plan often to keep it actionable and flexible so you will be able to align it with your company's evolving strategic vision.